The golden metal known as gold has a great presence. It represents not only riches and prosperity, but also financial security. While some want to flaunt their money, others discreetly accumulate wealth using a gold accumulation strategy. Indians are particularly fond of gold since it is deeply woven into the country’s social, cultural, and spiritual fabric.
As gold continues to make headlines around the world and becomes more expensive by the day, now may be a good moment for Indian households to invest in gold and protect their future with a safe investment option. Fortunately, today’s modest investor has a fantastic opportunity to do so by investing in digital gold.
If you have a Demat account with your bank to trade stocks and have wondered if you can use it to invest in digital gold, we’ll answer that question for you here. We’ll also talk about how to invest in digital gold and what a gold accumulation strategy is.
Is it possible to invest in digital gold using a Demat account?
You don’t need a Demat account to invest in gold. To trade gold ETFs, you’ll need a Demat account. Even if you have a Demat account, you can’t invest in digital gold through it because you’ll have to pay brokerage costs.
Buying digital gold online, on the other hand, is as simple as a few clicks, and there are no additional fees until you sell it or redeem actual gold from your account.
What exactly is “digital gold”?
To put it another way, digital gold is gold in an electronic form. You are purchasing physical gold without gaining custody of it when you buy digital gold. Every unit of digital gold purchased by a customer is backed by 24k gold with a purity of 99.5 percent. Until the consumer chooses to redeem his gold and take physical ownership of it, it is safely housed in a vault and insured by insurance. The customer also has the option of selling the gold to suit his financial requirements.
Because you can spend in small increments to amass gold and expand your wealth with a safe investment alternative, digital gold investment is also known as a gold accumulation plan. On Angel One, for example, you can buy digital gold for as little as Rs. 100.
Why should I put my money into digital gold?
Assurance of high quality
It’s difficult to evaluate the genuineness of gold from a local jewellery store unless you’re an expert. You can’t get pure 24 carat gold from a jewellery store unless you’re purchasing gold ingots or coins. The majority of jewellery is made of 22 carat gold, with impurities added to give the gold the proper shape and design.
There are no additional fees
If you consider gold jewellery to be a safe investment, you could end up losing a lot of money. There are costs associated with purchasing jewellery, as well as the use of valuable stones. Because your money isn’t totally invested in gold, you’ll get a lower return on your investment.
In a digital gold investment or gold accumulation plan, on the other hand, there are no additional fees, and the full amount is spent on purchasing gold at the current market price.
Storage that is secure
One of the major worries for consumers who invest in physical gold is ensuring safe gold storage. Storing at home can be dangerous, and using bank vaults is expensive, with no insurance cover or assurance of secure storage.
It is simple to invest in gold
Gold is not only a secure but also a profitable investment option nowadays. Gold prices have climbed by 16.06 percent in the last year. You don’t have to spend a fortune to benefit from this price increase, unlike actual gold. You can invest in tiny amounts and benefit from a gold accumulation strategy. The best part is that you don’t have to go to a store, provide any documentation, or go through long and tedious processes to buy digital gold; you can buy gold online with just a few clicks from the comfort of your own home through Angel One.
Wrapping Up – Investing in Gold
With gold prices at a 50-year high and the accessibility and affordability of digital gold, any investor – small, medium, or large – may now invest in a safe haven to counteract and minimise future economic and financial concerns. Gold has always been a safe and secure investment option that has proven to be reliable over time. Any day, you can rely on your digital gold to guide you through stormy waters.
